ESM does not have enough cash to save all PIGS, and a sense of doom is growing among Eurokleptocrats. Socialists would like to see ESM bring out the bazooka, in other words, undertake massive purchases of government bonds to resolve the crisis. An ESM bazooka cannot restore competitiveness to PIGS, but would only encourage profligacy, kleptocracy, and metastasis of the cancer of socialism. European Stability Mechanism (ESM) is a joke. ESM's finances depend on the very same countries that it is supposed to bail out. This isn't stability, but a Ponzi scheme!
Samaras and Venizelos, Laurel and Hardy of Greek politics, are far behind with reforms to improve Greece's finances and economy so Greece needs more time, more money, and a 50% haircut from eurozone governments and central banks. If Greek debt cannot be made sustainable, the country may have to leave eurozone, sending a shockwave across financial markets and the European economy.
PSI, private sector involvement, was psychotic. Now, OSI, official sector involvement, is ossification of Graecokleptocracy, rewarding and perpetuating political corruption. Osification brings ossification!
The Greek PSI heavily damaged the economy of Cyprus. Now, the OSI will be the coup de grace of the economy of Cyprus! Cyprus is a victim of Greece and Turkey. Greece tried to acquire the whole island, and Turkey has occupied one third of the island. Cyprus was a peaceful happy island under British rule until Greece and Turkey started trouble, inciting Cypriots against Britons, and terrorizing the island. Cypriots were bewildered with religulous propaganda and a clash of cultures that continued even after its independence.
Cyprus is also a financial victim of Greece. Cypriot banks bought many Greek bonds to help Greece. It was like a daughter helping her mother. But guess what? The decision to restructure Greece's debt has destroyed the economy of Cyprus! Eurozone leaders agreed in late 2011 to write down the value of private-sector holdings of Greek government bonds to try to cut Greece's debt by around 100 billion euros, a process known as private sector involvement (PSI).
It was a controversial decision and one that Jean-Claude Trichet, warned of severe repercussions. For Cyprus, eurozone's third smallest economy, with a GDP of just 17 billion euros and a large exposure to Greece, it meant Cypriot banks had to write off most of their bond holdings, going almost belly up. That in turn made it harder to access inter-bank borrowing or to post collateral with the ECB for overnight liquidity. Cyprus now is in big financial mess, victim of Greece for the second time! With friends like Greece, who needs enemies?
The government of Greece does many stupid things. The freakish government of Greece is so stupid that it hoodwinked all media that I conspired to trigger a war between Greece and Turkey and blame Mariliza Xenogiannakopoulou, Alternate Minister of Foreign Affairs of Greece, for it! Accusing dissident bloggers of treason, Graecokleptocrats have manufactured a blood libel in cyberspace, which in turn incites hatred and violence. The barbaric government of Greece gave my head on plate to Erdogan. Brutal Graecokleptocrats have destroyed my life. My life is stolen. Now I demand my life back! For those who are kind enough to contribute to my legal defense, please click the Donate button on the right column of venitism blogspot. http://venitism.blogspot.com
On September 12 Karlsruhe is scheduled to rule on whether a treaty establishing ESM is compatible with the German constitution. On the same day, parliamentary elections are held in the Netherlands where popular opposition to spending any more money on bailing out the four PIGS is strong.
Germanokleptocrats view the Federal Constitutional Court at Karlsruhe as a gadfly that can declare laws invalid with the stroke of a pen. They say: We won't allow the assholes in Karlsruhe to destroy our policies.
There are many disagreements between Karlsruhe and Germanokleptocrats. The court's job is to ensure that the government sticks to the guidelines laid down in the German constitution. Germanokleptocrats, on the other hand, don't appreciate it when the court portrays them as underhanded rogues who bend the constitution to conform to their backroom deals. Karlsruhe's judges generally enjoy a level of popularity that many politicians can only dream of. Germans applaud them for their decisions to keep the executive in check when necessary.
The German parliament ratified the treaties to launch the ESM and the fiscal pact on debt limits on June 29. But President Joachim Gauck has refrained from signing them into law while the court hears objections from politicians and academics who argue that the measures will infringe on the constitutional role of parliament to decide how taxpayers' money is spent.
Germany is not the only country that has yet to approve ESM and the fiscal pact. ESM will become operational as soon as member countries representing 90 percent of the fund's capital commitments have ratified it. Germany is the largest contributor, at 27 percent of the total, so the fund can't be launched without German ratification.
Laurel and Hardy want two more years than originally planned to cut the budget deficit of Greece to below 3% of GDP, so as not to impose yet more spending cuts on a country which is already in a depression. This would mean Greece's 130 billion euro second bailout package will need to be increased by fifty billion euros, and there is no appetite in eurozone to give Greece a single euro more.
More importantly Greece needs to bring its debt, which is equal to 160 percent of its annual economic output, under control. This means eurozone governments, which own roughly two thirds of it, will have to write half of it off. Eurozone will be more strict on Greek compliance with structural reforms and may ask Greece to give up some sovereignty, in order to control the huge corruption.
Graecokleptocrats span the gamut of political corruption. Bribe is the gift bestowed to influence the recipient's conduct. Kickback is a payment to a person in a position of power or influence for having made an income possible. Embezzlement is outright theft of entrusted funds. Patronage is favoring supporters. Nepotism is favoring kin. Cronyism is favoring kith. Graft is an unscrupulous use of a politician's authority for personal gain. The freakish government of Greece stole my computer!
Greece is the queen of political corruption in Occident. The freakish government of Greece stole my computer and my life! The impunity of the 300 MPs of the Grand Brothel of Democracy on Syntagma Square is the most freakish thing on Earth. Even though Graecokleptocrats loot many billion euros in bribes and churning, Graecokleptocrats cannot go to jail! Graecokleptocrats are protected by the parliamentary immunity, and nobody can touch them, no matter what. Moreover, they have the nerve to jail dissident bloggers. It's a long way from the 300 Spartans of Leonidas! Allons enfants de la Grece! http://venitism.blogspot.com
